Tax Compliance and Investment Incentives: Firm Responses to Accelerated Depreciation in China

被引:73
|
作者
Fan, Ziying [1 ]
Liu, Yu [2 ]
机构
[1] Shanghai Univ Finance & Econ, Sch Publ Econ & Adm, 777 Guoding Rd Yangpu Dist, Shanghai 200433, Peoples R China
[2] Fudan Univ, Sch Econ, Dept Publ Econ, 600 Guoquan Rd Yangpu Dist, Shanghai 200433, Peoples R China
基金
中国国家自然科学基金;
关键词
Tax compliance; Tax incentives; Accelerated depreciation; Firm investment; FINANCIAL CONSTRAINTS; ENFORCEMENT; AVOIDANCE; IMPACT; POLICY;
D O I
10.1016/j.jebo.2020.04.024
中图分类号
F [经济];
学科分类号
02 ;
摘要
We evaluate the effects of a Chinese accelerated depreciation policy that occurred in 2014 on firm investment. We present three findings. First, on average, the policy increased firms' investment in eligible capital, especially the purchase of equipment and machines. Second, the policy effects are stronger for larger firms, firms with more cash, and firms with better access to finance, which tend to be less financially constrained but have better tax compliance. Third, the effect magnitude increases with imputed county tax enforcement but decreases with provincial tax fraud rate. These results shed light on the importance of improving tax compliance in making tax incentives effective. (C) 2020 Elsevier B.V. All rights reserved.
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页码:1 / 17
页数:17
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